Cisco’s Investments in UK Technology
Cisco’s investments in the UK tech sector will mean an sound investment in the company’s future.
On Forbes’ list, Cisco Systems is listed as the 15th of the World’s Most Valuable Brands and has a net worth of USD 139 billion. They plan on investing in the UK’s technologic industry. This seems like a sound choice; with insane tech developments and the fact that Cisco provides companies with communications equipment, it really is an investment in the company’s future. They help an industry develop and them step in to be providers of the equipment that the specific sector needs… ingenious.
However, USD 1 billion is a huge investment, so a plan had to be made. With this surge of money in the tech sector, we are sure that there will be new online gambling business opportunities on the horizon, too. For now, however, Cisco plans on concentrating on the “internet of things,” in which, according to Financial Times, “companies are developing services and products for smarter financial services, retail and healthcare industries, as well as to connect cars and city projects.” The money will be spent of a vast array of things: Cisco plans on buying corporate entities, creating educational programs and doing some venture capitalist work, too.
Cisco’s investment will aid start-ups
As the Financial Times reports, Cisco intends to be a fairy Godmotherto many UK start-ups, with USD 150 million invested in them. Their venture capitalist group will also search for and invest in companies who have inventive ideas on how to strengthen cyber security. Cisco’s investment is not the first in UK tech history, however; during the past few years, there has been a huge splurge in funding. According to Dow Jones VentureSource, the tech and digital sectors in the UK were boosted with USD 1.9 billion last year. That’s not a bad step up from 2011, when the total amounted to USD 1.1 billion.
It is also true, as Financial Times states that the larger portion of the funds is coming from “US corporate and venture capital investors looking to cash in on Britain’s growing tech scene.” Furthermore, tech organizations got USD 1.4 billion in funding in 2014 in London alone. More than half of those funds came from investors in the US. Cisco has ben very wise with investing in the “internet of things”; predictions show that it will become a gigantic market soon and due to its nature, it is going to need countless new devices…which Cisco could easily manufacture. Just like you would need devices for online gambling.
Trillions of dollars to be made in the future
With technology developing with no speed limit, communications equipment companies have a lot to gain. As the Financial Times says, “Cisco has in the past described the market as a ‘USD 19 trillion opportunity’, with 50 billion internet-connected gadgets expected to be working by 2020.” Companies in the UK producing the same communications accessories are also focusing on creating solutions for the “internet of things.” Cisco’s investment in the future is also apparent with its plan to implement an education program featuring science, engineering, technology and math, focused to level out differences in Northern and Southern UK education.
This USD 1 billion investment is not the first pile of money that Cisco pushed into the UK economy. The company also has approximately 7,000 employees according to Financial Times and it also plans to increase this number by offering 200 new jobs. It has also bought smaller UK-based tech companies in the past. Cisco reported that in has already invested USD 5 billion in the UK’s tech sector through acquisitions and employment opportunities. Cisco’s ultimate plan, as the Financial Times states, is to “accelerate existing government goals to drive economic growth through high-tech innovation.” And, based on what happened in the UK, Cisco’s plan is incredibly successful.